BILL ANALYSIS Ó AJR 3 Page 1 CONCURRENCE IN SENATE AMENDMENTS AJR 3 (Alejo) As Amended August 19, 2016 Majority -------------------------------------------------------------------- |ASSEMBLY: |55-13 |(August 4, |SENATE: |29-8 |(August 23, | | | |2016) | | |2016) | | | | | | | | | | | | | | | -------------------------------------------------------------------- Original Committee Reference: J., E.D., & E. SUMMARY: Memorializes the California Legislature's support for the normalization of diplomatic relations with Cuba and calls on the United States (U.S.) Congress to advance legislation to remove barriers to full diplomatic relations and to help increase trade between the U.S. and Cuba. The Senate amendments add a statement about the opportunities full diplomatic relations provide the U.S. and Cuba regarding educational exchanges and culture-to-culture interactions. FISCAL EFFECT: None COMMENTS: The U.S. has maintained an economic, commercial, and AJR 3 Page 2 financial embargo of Cuba for more than 50 years. Since the removal of Soviet financial backing in the 1990s, Cuba has faced even more severe economic difficulties. Cuba has routinely used the status of the embargo, both internally and with the world at-large, as the stated, primary reason for their economic problems. For 25 consecutive years, the United Nations has annually passed a resolution calling for the lift of the embargo and condemning the U.S. for using access to food as a tool to gain a political objective. While opposed to the Communist government and its treatment of individuals it deems to be counterrevolutionaries, the U.S. has accepted more than one million Cuban asylum seekers and supported their adjustment to permanent resident status. In December 2014, President Obama called for a new path forward for U.S. and Cuba relations, which included the normalization of diplomatic relations and the lifting of all special sanctions. In taking this unprecedented action, President Obama said "it was clear that decades of U.S. isolation of Cuba had failed to accomplish our enduring objective of promoting the emergence of a democratic, prosperous, and stable Cuba." In the ensuing months, the Obama Administration has taken a significant number of regulatory steps toward normalization. A 2015 poll by the Pew Research Center suggests that this change in U.S. foreign policy is viewed favorably by nearly two-thirds (73%) of Americans. This resolution expresses the California Legislature's official support for lifting sanctions and taking concrete steps to expand trade opportunities with Cuba. The policy committee analysis includes further background on U.S. relations with Cuba, a timeline of key government actions to sever and then reestablish relations with Cuba, perspectives on what normalization could mean for human rights in Cuba, and California's role in advising on federal issues impacting the state. The chart below provides a historical outline of the most recent U.S. actions to reestablish relations with Cuba. AJR 3 Page 3 ---------------------------------------------------------------- |The Trade Relationship Between the U.S. and Cuba (1961 to 2016) | ---------------------------------------------------------------- |-----------+---------------------------------------------------| |December |President Obama issues statement about charting a | |2014 |new course on Cuba, which includes the | | |re-establishment of diplomatic relations with | | |Cuba. | | | | |-----------+---------------------------------------------------| |January |The U.S. initiates a new round of talks under | |2015 |1994-95 U.S. Cuba Migration Accords. These were | | |the first talks held after the policy changes | | |announced in December 2014 and reflected the new | | |emphasis of engagement and dialogue. | | | | |-----------+---------------------------------------------------| |July 2015 |1)The U.S. and Cuba reestablish diplomatic | | | relations by opening embassies in each other's | | | capitals. | | | | | | | | |2)General licenses become available for authorized | | | travelers under 12 official travel categories: | | | a) family visits, b) official business of the | | | U.S. government and certain intergovernmental | | | organizations; c) journalistic activities; d) | | | professional research and professional meetings; | | | e) educational activities; f) religious | | | activities; g) public performances, clinics, | | | athletics and other competitions; h) support for | | | the Cuban people; i) humanitarian projects; j) | AJR 3 Page 4 | | activities of private foundations, research, or | | | educational activities; k) exportation, | | | importation, or transmission of information or | | | information materials; and l) certain export | | | transactions. | | | | |-----------+---------------------------------------------------| |September |Revisions to the Cuban Assets Control Regulations | |2015 |and the Export Administration Regulations are | | |announced to authorize, among other things: | | | | | | | | |1)The transport of certain travelers sea under a | | | general license; | | | | | | | | |2)Persons subject to U.S. jurisdiction to | | | establish telecommunication and internet-based | | | businesses in Cuba; | | | | | | | | |3)Banking institutions to open and maintain | | | accounts for Cuban individuals for use while he | | | or she is located outside Cuba; | | | | | | | | |4)Certain commodities and software for use in | | | software development will be allowed to be | | | exported and reexported to eligible users in | | | Cuba; | | | | | | | | |5)Limits on donative remittances, except to the | | | Cuban government or Communist Party, are | | | eliminated; and a range of other actions related | | | to commerce. | | | | |-----------+---------------------------------------------------| |November |U.S. and Cuba hold binational migration talks | |2015 |based on the further implementation of the 1994-95 | | |U.S. Cuba Migration Accords. The Whitehouse | | |states that there is no plan to alter the current | AJR 3 Page 5 | |migration policy regarding Cuba. | | | | |-----------+---------------------------------------------------| |January |1)President Obama issues Presidential Memorandum | |2016 | to the U.S. Trade Representative relative to the | | | Bipartisan Congressional Trade Priorities and | | | Accountability Act of 2015. | | |2)The U.S. Department of Commerce issues final | | | rule for the creation of a License Exception | | | Support for the Cuban People, which authorizes | | | the export and reexport, without license, of | | | certain items that are intended to improve the | | | living conditions of the people of Cuba. The | | | new policy also authorized a case-by-case | | | license review of telecommunication devises. | | | | | | | | |3)U.S. Treasury amends restrictions regarding the | | | entry into blocked airspace, code-sharing, and | | | leasing arrangements to facilitate carrier | | | services by air. This is expected to ease | | | transportation sanctions which allow up to 110 | | | non-stop flights per day between the U.S. and | | | Cuba. | | | | |-----------+---------------------------------------------------| |March 2016 |1)Travel restrictions are lifted for individuals | | | who are traveling to Cuba for people-to-people | | | educational travel, provided that the traveler | | | participates in a full schedule of educational | | | activities. This change is intended to make | | | authorized educational travel more accessible | | | and less expensive to U.S. citizens. The | | | statutory prohibition on travel for tourist | | | activities remains in place. | | | | | | | | |2)Cuban nationals in the U.S. under a | | | non-immigrant status are allowed to earn a | | | salary, consistent with their particular visa | | | category. U.S. companies are authorized to | | | sponsor or hire Cuban nationals to work or | AJR 3 Page 6 | | perform in the U.S. under similar conditions as | | | other foreign nationals. Particularly focused | | | on artists, performers, and athletes. | | | | |-----------+---------------------------------------------------| |April 2016 |Regulatory changes are made to the Cuban Assets | | |Control Regulation to allow importation of certain | | |goods produced by independent Cuban entrepreneurs. | | | Products NOT covered include, but are not limited | | |to, animal, vegetable, and mineral products, | | |vehicles and associated transportation equipment, | | |arms and munitions, machinery and electronic | | |equipment, alcohol, and tobacco. | | | | --------------------------------------------------------------- ---------------------------------------------------------------- | Source: Multiple sources including press statements, Federal | |Register publications, and news stories. Not all sources could | |be corroborated by official documents. | | | | | | | ---------------------------------------------------------------- Federal Legislation: The U.S. Congress is currently considering legislation that would advance the purposes of this resolution, including, but not limited to, HR 3238 (Emmer Republican-Minnesota) The Cuba Trade Act of 2015. This bill is currently pending before the U.S. House of Representative's Subcommittee on Trade. There are 23 co-authors (12-Democrats and 11-Republicans), including California Representatives Sam Farr, Barbara Lee, and Ann Eshoo. A summary of the changes, as identified by the Congressional Research Service are described below. 1)The Cuban Democracy Act of 1992 is amended to eliminate: a) Presidential authority to impose sanctions against Cuban trading partners; b) Restrictions on transactions between U.S.-owned or controlled firms and Cuba; and AJR 3 Page 7 c) Limitations on direct shipping between Cuban and U.S. ports, and restrictions on remittances. 2)The Cuban Liberty and Democratic Solidarity (LIBERTAD) Act of 1996 is amended to eliminate: a) The enforcement of an economic embargo of Cuban provisions; and b) The prohibition on indirect financing of Cuba. 3)The Trade Sanctions Reform and Export Enhancement Act of 2000 is amended to: a) Remove Cuba from the list of state sponsors of terrorism subject to agricultural and medical export restrictions; b) Eliminate the prohibition on U.S. assistance, including foreign assistance, export assistance, and any credit or guarantees being made available for exports to Cuba; c) Eliminate the prohibition against a U.S. person's providing payment or financing terms for sales of agricultural commodities or products to Cuba; d) Prohibit the U.S from providing any foreign assistance to Cuba or any financial assistance, loans, loan guarantees, extension of credit, or other financing for exports to Cuba; and e) Eliminate the prohibition on the U.S. entry of merchandise that is of Cuban origin is or has been located in or transported from or through Cuba, or is made or derived in whole or in part of any article which is the growth, produce, or manufacture of Cuba. 4)The federal government is prohibited from obligating or expending funds to promote trade with or develop markets in AJR 3 Page 8 Cuba, except for certain commodity promotion programs. Human Rights in Cuba: The harsh treatment of individuals who are considered counter-revolutionary, including journalists, teachers, and human rights activities have been well documented. According to Human Rights Watch, "The Cuban government continues to repress dissent and discourage public criticism. While in recent years it has relied less on long-term prison sentences to punish its critics, short-term arbitrary arrests of human rights defenders, independent journalists, and other critics have increased dramatically. Other repressive tactics employed by the government include beatings, public acts of shaming, and the termination of employment." Freedom House, a U.S. based nonprofit that annually produces a comparative assessment of over 195 countries, scored Cuba a 6 out 7 (7 being the worst) for its actions related to civil liberties. Among other concerns raised was the escalation of short-term "preventative" detentions, which further eroded core civil rights such as freedom of the press, expression, belief, and assembly. Freedom House notes in their 2015 assessment that the Cuban Council of State has complete control over the courts and the judiciary. Cuba does not regularly grant international humanitarian organizations access to prisons and Cubans of African descent have been reported to experience widespread discrimination. While human rights groups express significant concerns over the abuse of human rights, including arbitrary detentions in which individuals are beaten, threatened, and held incommunicado for hours and days, groups like Human Rights Watch, also believe that the U.S. sanctions have imposed indiscriminate hardship on the Cuban people and have done little to address the country's poor record on human rights. These concerns over the impact of U.S. sanctions on the Cuban people have also been repeatedly and consistently expressed through resolutions adopted by the General Assembly of the United Nations. In October 2014, 188 of the 192 member countries voted to approve a resolution that called on the U.S. AJR 3 Page 9 to end its economic, commercial, and financial embargo of Cuba. Among other issues, the resolution called on the U.S. to refrain from applying laws and regulations, such as the 1996 Helms-Burton Act, and that food should not be used as an instrument for political and economic pressure. In announcing the U.S.' intent to normalize diplomatic relations with Cuba and ease restrictions on travel and commerce, President Obama noted that these changes in U.S. policy were predicated on key concessions by the Cuban government, including a commitment to release 53 political prisoners and to allow visits by international human rights monitors. President Obama has also stated that human rights will be a "critical focus" to the U.S. continued engagement. Analysis Prepared by: Toni Symonds / J., E.D., & E. / (916) 319-2090 FN: 0004796